Friday, November 05, 2010

a thought

Okay, so, evidence these days seems to blame the Great Recession mostly on the housing bond market. Greedy mortgage brokers and banks gave out loans to people pretty much because they could breath. They could do this because there was a hungry bond market clamouring for investment vehicles into which to put their money.
My question is as follows: how much of that money would not have been available had taxes for the wealthy and taxes on capital gains not been cut so low? Enough to have made the bubble not as bad? To have eliminated it altogether?
Tax cuts are sold to us as being good for investment in "small business"; how much of that money actually goes there, and how much of it is "invested" in the giant horse race we call the stock market?

Consider this idea as we watch the Republicans and their one-trick-pony answer to the economic crisis.

2 comments:

Omnipotent Poobah said...

They already said they weren't going to answer anything. They'll be too busy with their top priority, trying to get rid of Obama.

BTW, your security word for this comment is "edavers". Are you running some sort of electronic morgue in the suburbs of Dallas?

daveawayfromhome said...

yes, and it's filled with my failed attempts to become one with the Singularity